Market share, stealing

Finally, the consistency across various studies in the finding of spillovers of DTCA to other brands with little or no impact on own-brand is striking. As advertisers learn from their mistakes and become more sophisticated, the results for own-brand DTCA may change. Controversies on whether DTCA and, for that matter, other forms of advertising are informative and market-expanding versus persuasive and market share stealing are likely to continue for some time. 

FDA regulatory efforts attempt to ensure that the content of DTCA is informative and understandable to consumers. Thus, of particular interest is whether the empirical evidence supports market size-enhancing impacts of DTCA spending and/or market share rivalrous or business stealing impacts. To date, the empirical evidence is reasonably consistent When DTCA spending has any impact, the primary impact is via increasing market size, rather than affecting individual market shares. 

Stealing market share Competitor s customers may switch and become new customers. 

The importance of a collaborative S OP process is further supported by the fact that the optimal action is different if most of the demand increase comes from market growth or stealing market share rather than from forward buying. We now illustrate the scenario in which a discount leads to a large increase in consumption. 

Should we grow the market, steal share from competitors, or create new markets for the compound ... 

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